France WikiCommons

France's bond yields fell to record lows today, following positive investor sentiment for the country's relatively safe-haven bonds and despite weaknesses and political questions.

According to Agence France Tresor, yields on France's 10 year, 15-year and 50-year bonds, also known as OATs, fell to new lows, just as strong demand for Spain's highly anticipated bond auction led to an over subscription of €2.07bn worth of debt.

The yield drop is a pivotal change in market sentiment, as investors clearly cast aside concerns over newly elected French President, Francois Hollande's, pro-growth, tax and spend platform and that France is part of the eurozone's core economies.

Socialist Hollande's plans initially cause concern across the European Union as the EU warned that it could overburden France's social welfare system.

France's benchmark 10-year bond yield dropped to a low of 2.46 percent, which is below the low of 2.91 percent recorded on 6 March 2012.

The yield on the 3.5 percent 15-year bond fell to 2.90 percent, below the 3.00 percent low recorded on 7 Sept 2010.